Mayor Steven Fulop touted the successes of his administration over the last year before a packed house in the City Hall council chambers in his second State of the City address on Feb. 24.
“My goal is to show what is possible to accomplish when government functions,” he said. “We’re out to prove that government can mean something positive for our residents.”
Hundreds of people, including judges, politicians, community leaders and activists, filled the chamber as Fulop talked about the past year and his plans for the future, a large part of which involved significant growth for the city.
He predicted Jersey City would overtake Newark as the largest city in the state by early next year.
This growth is largely due to the massive development of residential units and high rises that will transform the Jersey City skyline, along the waterfront and in the Journal Square section of the city. He said Jersey City would soon have 17 of the 20 tallest buildings in the state. Under construction currently are 6,000 new residential units with 18,000 more approved for construction.
The mayor’s speech was preceded by a two-minute film clip that featured former President Bill Clinton and highlighted Fulop’s successes over the last two years.
In giving his State of the City address, Fulop said he is following a tradition that has gone on since the founding of Jersey City.
“This last year has been a great experience and full of challenges,” he said, saying that there has been agreement and disagreement among city leadership, but all have shared a common agenda.
“We are seeing the greatest expansion in Jersey City history and this economic surge is no accident. It is a result of the policy we established.”
New budget contains no tax increase
“For the first time, there is building coming out of the ground in Journal Square,” he said. “Unemployment is declining faster here than anywhere in the state or the nation.”
The twenty five minute speech took place just after his announcement that he will introduce a $350 million budget later this month that would have no increase in municipal taxes.
His 2014 budget actually showed a decrease, although critics attribute this to a last minute bond pushed through the City Council during the summer of 2013 that allowed Fulop a large surplus in 2014.
Although Fulop drew numerous standing ovations, the speech covered very little new ground, and focused primarily on the upcoming budget.
He said the city has cut taxes, invested in parks, the fire and police departments, and has seen an upgrade it its credit rating by Moodys.
While he acknowledged some issues with snow removal and its aftermath, he said his administration recognized its mistakes and has grown as a result.
Crime in decline
Fulop praised the city prisoner reentry program that he said has reduced the number of one-time offenders returning to jail by more than one third.
He also pointed to the renovation of the Landmark Loew’s Jersey Theatre that would soon bring top entertainment to the city, but assured that the Friends of the Loew’s – who currently operate the theater – would have a viable role to play even though the city has contracted with AEG Live to renovate and manage the facility. The Friends of the Loew’s are currently in court with the city to stop the AEG deal from usurping their management.
In a moving moment, Fulop acknowledged the death of Detective Melvin Santiago, who was murdered last summer while responding to a call on the West Side, nothing that the officer’s mother was attending the State of the City address. This brought the entire room to their feet for a sustained ovation for the fallen officer.
Despite the officer’s death, crime fell in most categories over the last year. Fulop paid tribute to the fact that Jersey City remained relatively calm in the aftermath of racially-charged grand jury decisions that caused protests elsewhere in the nation.
He said Jersey City was exposed to the same challenges as many communities across the nation, but came through them stronger and more united.
The one troubling statistic was the rise in homicides, from 20 in 2013 to 23 in 2014.
Everybody’s talking
Fulop said people are talking about Jersey City all over the state.
“We are moving fast and in the right direction,” he said. “We are ahead in most national trends.”
He pointed to the fact that five of President Barack Obama’s cabinet officers have visited Jersey City over the last year.
“In 2015 we intend to make Jersey City even stronger,” he said. “We’re charting a course for a pride and success. We want the entire city to move forward. To quote the Marine Corps, ‘Nobody ever gets left behind.’” The mayor is a former Marine.
One of the keys to success is job creation, and he pointed to the fact that Jersey City has created more than 9,000 jobs since he took office in July 2013.
“This is about providing for families throughout the city,” he said. “We’ve made it a priority and we have outpaced the state and nation.”
Along with new residential development, the city has also seen big corporations setting up operations.
Changes in city policy have resulted in the biggest spurt of residential construction in the city’s recorded history, and more Jersey City residents being hired onto these construction projects. This is partly due to employment training that has allowed the city to match people with apprentice programs and jobs. He said the city intends to do more.
He said the next year will see development in areas along Central Avenue, West Side Avenue and Martin Luther King Drive. He said Journal Square is about to see a restoration, with some of the tallest buildings in the state due to be built there.
“But we’re not just building bigger, we’re building smarter,” he said, and noted that a housing study is underway that will push for more affordable housing in the city.
“We share the same democratic values as our grandparents,” he said. “Many of them moved here believing these streets were paved with gold. We know they are not. But through sweat-equity, they built a good life here, and we want to build on their success,” Fulop said.
Al Sullivan may be reached at asullivan@hudsonreporter.com.
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Fulop introduces 2015 budget with no tax increase
Mayor Steven M. Fulop announced that the administration will introduce later in March a $535 million 2015 budget with no tax increase.
Fulop said that for the second consecutive year the city’s tax base grew substantially as the administration continued to implement smart and responsible fiscal planning to keep taxes stable while also improving services and adding new programming.
The announcement follows a 2.13 percent tax decrease in 2014 – a rare accomplishment for cities in New Jersey – as part of the first Fulop administration budget.
“We are changing the way the municipal budget is developed, using a multi-year forecast and not relying on one shot revenue deals,” said Mayor Fulop. “We delivered a tax cut last year and kept taxes stable this year, while hiring more police officers and firefighters, investing in our parks and increasing recreational programming. We are being smart and responsible with our taxpayer dollars and are planning for the future.”
The tax base, or ratable base, grew in Jersey City by $57 million in 2015 due to Fulop Administration policies encouraging economic investment throughout the city. In 2014, the tax base grew by $118 million, with Jersey City now having the largest municipal tax base in the state.
“Our pledge was to consolidate services and cut pension costs, and while it took time, we were able to achieve that goal,” said Fulop. “By working with our legislators in Trenton and state government, we adopted important changes that combined will save us $2 million or more annually.”
One uncertainty hovering over Jersey City’s tax situation is a city-wide property tax revaluation that was close to completion before the city sued to halt the process. The city hasn’t revalued property for taxation since 1988, and until the litigation is resolved, property owners won’t know the size of their future tax bills.
Long-term planning
The administration has developed a budget framework for the next three years to provide a better understanding of cost exposures and provide the ability to correct gradually. This practice will allow the administration to use smart fiscal planning and a long-term budget outlook to identify potential expenditures and savings.
“It only makes sense that you want to know what future liabilities are ahead of you in the coming years as you budget for this year,” said Fulop. “This corporate sector practice is one rarely if ever used by governments, but it is one that works and we believe it can be a model for cities across the country.”
In addition to cutting costs and stabilizing taxes, the 2015 budget will include the hiring of an additional 50 police officers, approximately 30 firefighters, and the continued expansion of recreational programming and park investments throughout the city. The Department of Health and Human Services will grow its senior affairs and nutrition programs to reach more senior citizens, while the Jersey City Summer Works program will place nearly 1,000 Jersey City students in summer jobs and internships. The city will also implement an aggressive citywide street repaving program during the spring and summer.
”With increased ratables and streamlined services, Jersey City is moving toward long-term fiscal stability,” said Council President Rolando Lavarro, Jr. “The council will continue to work with the mayor to keep taxes stable and enhance our residents’ quality of life.”
In 2014, the Fulop administration introduced a budget with a 2.13 percent tax decrease, while also hiring 38 new police officers and 26 new firefighters, and investing millions of dollars into park improvements and recreation programs citywide.
“We know that lowering taxes is not common in New Jersey, however in Jersey City Mayor Fulop continues to grow the tax base which is significant,” said Maria Nieves, president and CEO of the Hudson County Chamber of Commerce. “Stable taxes both attract and maintain businesses large and small and is an important factor in helping them thrive.” – Al Sullivan